BHARTIARTL

STOCK REVIEW

Driven by tariff repair in the India wireless segment,

FCF generation improved significantly over the past few years (9MFY25: INR292b). Bharti’s main priority for cash deployment so far has been prepaying high-cost debt. With a complete flow-through of tariff hikes and a moderation in capex intensity, Bharti is likely to generate significant FCF (~INR1.3t over FY25-27E). With high-cost debt largely repaid and leverage under control, we believe capital allocation remains the key monitorable and would likely be the biggest driver for Bharti’s stock price performance over the medium term. Outlook Our FY25-27 estimates are broadly unchanged as we build in FY24-27 CAGR of ~15%/19% in Bharti’s consolidated revenue/EBITDA. We reiterate our BUY rating on Bharti with a revised TP of INR1,985 (earlier INR1,990).